TOGETHER WITH
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Good morning. The stock market is utter madness right now.
- The rental car company Hertz gained 115% yesterday, erasing all its losses since it filed for bankruptcy just a few weeks ago.
- Chesapeake Energy, which
lost more than $8 billion in the first quarter, shot up more than 181%.
Its stock price has jumped more than 700% since mid-May.
- Meanwhile, Apple is back at a record high and worth $1.4 trillion.
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NASDAQ
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9,924.74
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+ 1.13%
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S&P
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3,232.39
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+ 1.20%
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DJIA
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27,572.44
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+ 1.70%
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GOLD
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1,705.70
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+ 1.35%
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10-YR
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0.882%
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- 2.00 bps
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OIL
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38.24
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- 3.31%
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*As of market close
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Markets: “The S&P 500 turned
positive for the year”—something we would never have believed in March
but did in fact happen yesterday. Plus, the Nasdaq closed at an all-time high.
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Francis Scialabba
In what is believed to be a Morning Brew first, we're going to lead today's newsletter with an earnings report by an RV company—Thor Industries, to be specific, which makes Airstream and other brands.
Tl;dr: It's a grand time to be an RV company.
- "Despite this being one
of the most unusual quarters I have ever experienced," CEO Bob Martin
said, "I am pleased to report that we were profitable and generated
positive net cash from operations."
- "One new trend we are
seeing is an evolution from 'work at home' to 'work from anywhere' as RV
buyers use their new RVs as their office wherever they are, or wherever
they want to be."
Thanks for the transition, Bob
Many white
collar workers, freed from the confines of their office, are realizing
they don't actually have to work from their literal home, either. And
their wanderlust is giving a boost not only to RV companies, but to
vacation rental platforms that were decimated by lockdowns.
Take Airbnb, which cut 25% of its workforce last month. Now, it says more U.S. listings were booked between May 17 and June 3 this year than the same period in 2019.
- "Work from home is becoming work from any home," CEO Brian Chesky told Bloomberg, adding that Airbnb has more listings now than before the pandemic.
- The surprising rebound in demand means Airbnb is not ruling out an IPO this year—something that seemed inconceivable in April.
What do companies think? There doesn't seem to be a true consensus yet. Some Silicon Valley heavyweights like Twitter have embraced the "work from anywhere" approach. Others, like Cisco, are slowly bringing employees back to the office, albeit with elaborate tech to keep them safe.
Embrace debate: Portfolio manager and Bloomberg Opinion columnist Conor Sen writes RVs are the "new commercial real estate." Do you agree?
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Like saying
"Chick-fil-A sauce is overrated," a committee at the National Bureau of
Economic Research decided to state the obvious yesterday. After a record
128 months of expansion, the economy officially entered a recession in February.
- How obvious was it? The
NBER usually takes over a year to look at economic data before declaring
a recession. This time, it...did not take that long.
- The NBER's working definition of a recession is a "decline in economic activity that lasts more than a few months."
Zoom out: Economists from other agencies decided to join in and rip off the Band-Aids in one sitting yesterday.
- A survey of business economists predicted that U.S. GDP will decline 5.9% in 2020—the biggest drop since 1946.
- The World Bank predicted
a 5.2% contraction in the global economy this year and a 7% decline in
advanced economies. The report also said emerging market economies would
shrink as a group for the first time in 60 years.
Looking ahead…the
technical recession could be relatively short as states lift pandemic
restrictions and resume activity. However, a full recovery (especially
in the jobs market) will take longer.
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Giphy
Nope, it's just the U.S. IPO market. Yesterday, SoftBank-backed "insurtech" startup Lemonade filed to go public.
The $2 billion millennial-focused company, which sells renters and
homeowners insurance, hopes to keep the IPO ball rolling after the
busiest week for U.S. public offerings since the Before Times
(February).
Let's talk about those new faces
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ZoomInfo cashed in on some naming
juju. Shares of the business-intelligence platform have more than
doubled since its IPO last week, turning both founders into billionaires.
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Nikola Corp. makes hydrogen- and battery-powered trucks that don't look like they belong in a cyberpunk dreamscape. After shares gained 104%
on its third day trading on the Nasdaq, the company is now worth $26
billion—and Elon is definitely looking in his rearview mirror. (Maybe
they should just merge to form Nikola Tesla?)
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Warner Music Group also had a successful, if less eye-popping, IPO last week.
Bottom line: After disappointing IPOs from Uber and Lyft last year, it looked like investors had finally soured
on money-burning startups. But, even during a global pandemic, they’re
back again. Except for Warner, all the companies listed above are
unprofitable.
+ More about Lemonade: Last year we invited CEO Daniel Schreiber on an episode of our podcast Business Casual. Give it a listen.
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This card—and can we all agree its blue matte aesthetic is quite pleasing?—is connected to a new kind of checking account. A checking account you’re going to want to switch to.
Betterment Checking is a hassle-free, no fee‡ checking account with the Betterment Visa Debit Card. Betterment Checking offers money-saving benefits like ATM fees reimbursed worldwide, no overdraft or monthly fees, and no minimum balance.
What’s more is Betterment Checking offers top-notch security and brag-to-your-friends convenience. You’re even FDIC-insured up to $250k.
Your wallet
will look good. And with the savings, security, and convenience
Betterment Checking offers, you’re going to look smart.
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Hospitals and money—two words that rarely combine in a feel-good story. Now mix in some pandemic relief funds...
In March,
Congress approved a $175 billion package for hospitals to cover costs
and lost revenue tied to treating COVID-19 patients. According to a NYT
analysis, 60 of the largest U.S. hospital chains collected $15 billion.
Where it gets controversial
At least 36
chains laid off, furloughed, or reduced pay of employees. And grant
recipients included nonprofits and publicly traded firms (like HCA and
Tenet Healthcare) with tens of billions in emergency cash reserves.
A Kaiser
Family Foundation study suggests formulas used to calculate grants were
based on patient revenue (benefitting hospitals serving wealthier,
privately insured patients) and didn't take into account financial need.
- The Department of Health
and Human Services says it had to get money out fast, and accounting
for need would've slowed things down.
- Hospitals didn't have to
apply for grants, though it was encouraged they use them to pay and
protect doctors, nurses, and other workers.
Big picture: Many big hospital chains are taking a hit. But their rainy day funds can survive a hurricane, whereas most smaller and rural hospitals only have 30 days of runway.
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Apple Maps
There's no
better feeling than shaving a few minutes off the Google Maps ETA. But
less competitive users have spotted some map updates relevant to the
ongoing protests over racial injustice.
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Apple Maps quickly patched
the satellite view of Washington, D.C. to show the Black Lives Matter
mural commissioned last Friday by Mayor Muriel Bowser. You can see it in
the screenshot above.
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Google Maps also relabeled the portion of 16th St. covered by the mural as “Black Lives Matter Plaza” to reflect Mayor Bowser’s official renaming. It updated the software in a matter of hours.
Even Snap Map, the under-the-radar Snapchat feature, has proven to be a valuable tool
for protesters. "Heat maps" show large congregations of Snap users,
while Snap stories give real-time, on-the-ground updates. Snap Map was
also used to visualize the school walkouts protesting gun violence in 2018.
+ While we're here: Google Maps is rolling out COVID-19 alerts,
including reminders to wear face masks on public transportation, to
help people navigate cities emerging from pandemic restrictions.
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IBM is getting out of the facial recognition business and called on Congress to address systemic racism in the U.S.
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The WHO: It's "very rare" for asymptomatic individuals to spread the coronavirus.
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Dunkin' franchisees will hire up to 25,000 employees.
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BP, however, will cut 10,000 employees before the year's out to adjust to lower oil prices.
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ARMY,
the fanatic fanbase of K-pop group BTS, raised $1 million for Black
Lives Matter 24 hours after BTS and Big Hit Entertainment pledged $1
million to the cause.
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Unprecedented times call for unprecedented strategies. Sailthru’s guide for retailers highlights
14 tactics that retailers can test right now as they navigate uncharted
territory while communicating with customers, saving sales, and lifting
brand loyalty. Get the guide today.*
Tech Tip Tuesday: How to disable pesky autoplay videos on Google Chrome.
*This is sponsored advertising content
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Yesterday, New Zealand reported no active COVID-19 cases
and lifted the vast majority of social distancing restrictions. To
celebrate the country’s victory over the virus, here are five questions
about New Zealand.
- What side of the road do they drive on?
- What is the name of New Zealand’s most populous city?
- New Zealand’s official languages are NZ Sign Language and ______
- What is the nickname for the New Zealand national rugby team?
- If you ordered a hokey pokey in New Zealand, what would you be getting?
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When
you do, we don’t just give you a pat on the back and say, “Well done
old sport.” We give you actual rewards that’ll make everyone jealous.
Hit the button below to get started.
Click to Share
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1. Left
2. Auckland
3.
Māori. English is the de facto language, but not official. New Zealand
became the first country to declare sign language an official language
in 2006.
4. The All Blacks
5. A flavor of ice cream
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| ADVERTISEMENT |
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| ADVERTISEMENT |
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| FEATURED EVENT
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| 1983
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| Landslide reelection victory for Margaret Thatcher
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| FEATURED BIOGRAPHY
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| Peter I (the Great)
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